Bermuda must look at improving its port facilities in Hamilton and St. George's to host the new generation of larger cruise ships, Government's long-awaited cruise ship policy recommended yesterday.

The report also calls for a study into moving the container dock from Hamilton to another location to open up the harbour for ships and for leisure purposes.

Mega-ships will continue to call occasionally at Dockyard next year, although Government has rejected recommendations in a previous consultants' report to dramatically alter Hamilton harbour to accommodate mega-ships.

The cruise ship policy states most of the cruise lines which currently have contracts with Bermuda do not have modern replacement ships small enough to dock at Hamilton or St. George's.

The Pacific Princess is 554 feet, but the average length of ship in the Princess Cruises' fleet is 856 feet.

Likewise, the Nordic Empress is 692 feet, while the average size of ship in the Royal Caribbean International fleet is 905 feet.

Government will allow ships to come for 13 weeks rather than 26 weeks next week to attract luxury ships which prefer shorter runs. And the report recommends reducing the duration of ship contracts from ten years to between three and five.

The current cap on 1,500 passengers per ship is to be maintained, although this target may not always be able to be achieved.

Unveiling the policy yesterday, Tourism Minister David Allen also revealed there will be more cruise ships next year, including weekend callers at all three ports, but that Dockyard will not get a dedicated ship.

Instead, Dockyard will be served by two or three different ships next year, including occasional mega-ships.

A total of seven ships will fill six slots for next year, and Government is due to announce shortly a series of new contracts which have been struck with cruise lines.

Mr. Allen said although more ships will visit the Island next year - and the daily passenger limit increased from 6,500 to 7,500 - he believed hoteliers, traditionally hostile to more cruise visitors, thought the policy was balanced.

"The bulk of hoteliers are quite comfortable and some of the most prominent have said this is a good fit," said Mr. Allen.

"In terms of visitor volume and economic contribution, our new cruise ship policy ensures a manageable balance, and the desired balance between air and cruise visitors, and the delivery of the visitor profile we envision.

"The current ships coming to Bermuda are the oldest and smallest of the seven day market cruise ships, and the latest generation of ships are longer and larger.

"It follows that our ports must be improved if we are to remain a world-class cruise destination."

Mr. Allen said it may only take "slight adjustments" to Hamilton docks to accommodate bigger ships, but Town Cut, which is 220 feet wide, would need to be expanded to take significantly bigger ships into St. George's.

A previous consultants' report suggested a massive pier be built into Hamilton Harbour to accommodate mega-ships, but Mr. Allen described this as "Draconian" and said Government had rejected this.

Previous estimates had put the cost of widening Town Cut at $13 million and he suggested some of the cruise lines may wish to contribute to the cost if work took place.

Another suggestion in the report is switching the $60 levied on each cruise passenger, regardless of length of stay, to $20 per day. This would allow Bermuda to attract ships on repositioning trips which avoid the Island because of the high head tax for short stays.

Mr. Allen said moving the container port to another location was a "huge issue" which would require a lot of consultation, and he did not envisage anything happening on that front for some time.

The report recommends Government and the Corporation of Hamilton carry out a study into moving the container docks.

The report also suggests reviewing the environmental impact of cruise ships, including monitoring soot and other emissions. Marine and Ports is to meet with cruise operators to explore options for minimising wash and sediment generated when ships move between ports.

The controversial cruise-and-stay policy is to continue, and Mr. Allen said some leading cruise are interested in flying passengers for short breaks to Bermuda before they embark on cruises, while others are exploring voyages terminating in Bermuda.

The report is to be circulated widely in the community for discussion and a series of town hall meeting are scheduled to get suggestions. MPs will also debate the policy.